What Is the Amount of Revenue Recognized in the Statement

question 78

Multiple Choice

What is the amount of revenue recognized in the statement of earnings by a company that sells goods to customers?

• A) Total sales minus beginning amount of trade receivables.
• B) Total sales, both cash and credit sales, for the period.
• C) The cash collected from customers during the current period.
• D) The amount of cash collected plus the beginning amount of trade receivables.

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Definitions:

Ultra Vires

Acts performed by a corporation that are beyond the scope of its charter or legal authority.

Redress

The act of correcting a wrong or giving compensation for a harm done.

State of Incorporation

The specific state within the United States in which a company is legally registered to do business.

Statutory Close Corporation Supplement

A legal provision allowing a closely held corporation to operate with less formal procedures than are required of other corporations.